Regulation of cryptocurrency has become a necessity: Nirmala Sitharaman

Washington: India’s Finance Minister Nirmala Sitharaman, during her visit to the US, held talks with Kristalina Georgieva, Managing Director of the International Monetary Fund (IMF). The IMF chief has praised the performance of the Indian economy even during the turmoil and uncertainty due to the Coronavirus pandemic and the recent Russia-Ukraine war. Finance Minister Nirmala Sitharaman, while speaking at the seminar conducted by the IMF, expressed concerns about the threats posed by cryptocurrency. Sitharaman has highlighted the risk of money laundering and terror financing using cryptocurrency.

Over the last few months, India has taken a firm stand against the use of cryptocurrency on international platforms. Last year, in November, while addressing the Sydney Dialogue held in Australia, Prime Minister Narendra Modi warned about cryptocurrency’s threats to democratic countries. On the same lines, Finance Minister Sitharaman, while addressing a seminar of IMF, had emphasised the need to regulate cryptocurrencies using technology. She said that the Central bank of any two countries transacting their currency is welcomed, but unregulated cryptocurrency is dangerous as it can be used for money laundering and terror financing.

Sitharaman also pointed out that due to the extent of use of cryptocurrency, no country can control it on its own and hence all countries in the world must collaborate and cooperate on this issue. Meanwhile, during her US visit, Finance Minister Sitharaman met IMF Chief Kristalina Georgieva. During the discussion, Georgieva appreciated the performance of the Indian economy. The IMF had recently predicted that the Indian economy would be the fastest-growing economy among the developing countries. Georgieva also praised the extensive Coronavirus vaccination campaign conducted by India. Georgieva also took note of the comprehensive assistance provided by India to Sri Lanka during these troubled times. Finance Minister Sitharaman and Georgieva also discussed the geopolitical developments. Finance Minister Sitharaman and the IMF chief also expressed concerns about the Ukraine war, causing devastating effects on the global economy due to the surge in oil prices.